I need help im in depressing time here with a car. HELP!!!!!!?

Question

My boyfriend bought a car in may his granfather co signed for him because he is only 18 and gave a 500 dollars down payment and now its july and he is about to start school next month to be a mechanic and he need to buy almost 5 thousand dollars worth tools plus he ows his grandfather a 1000 dollars and rent is 300 dollars plus cellphone which is 40 and car insurance is 150 a month so its crazy and he only makes 9 dollars a hour and the car payments are 286 a month and i dont kno were depressed he was thinking to return the car and buya 2 thousand dollar car one he doesnt have to make monthly payments on and stuff is it possible to return the car? the car was worth 8 thousand dollars but they added alot of t hings to the load and stuff and eded up being 21 thousand dollars and he had to pay it in 5 to 6 years...... and that is to much what should we do ? return the caR? how? please help thanks

Answer 1

you are in big trouble, first you cant just give the car back. that's not only going to ruin you b-Friends credit but his grandfathers as well, under no circumstance should you do that to someone who went out of there way to help you out.

every one is blown away by the #s you are talking about, first you didn't finance 21000.00 you are probably financing 15000 and with interest its gone up to 21000 after you pay the loan and that even includes your down payment.

what you should do is this.
tell the dealer to cancel the extended service plan, gap insurance , credit life and accidental health. on you loan( assuming you have all three). then go and refinance the loan on your own. so you don't have to put your grandfather in the position you are considering. then you can repo it if you like and only hurt you own credit.


but the best idea is to keep the car and get a second job to help pay all your other bills. there are two of you. a little sacrifice shows a lot of character

Answer 2

No, you don't just return a car. Car sales are different than say, buying something at Walmart, because vehicles depreciate, meaning they lose value.

These expenses should have been considered a little more carefully before he went $21,000 in debt on a car worth $8000, signed up for school, etc. $9 an hour isn't a huge salary, I can appreciate that it's difficult to make ends meet.

The fact is, he is contractually obligated to pay for his car, he owes that money. Even if he turned the car in to the lender, he would get rid of the car payment, but he would still owe them the difference between the value of the car, which will be much less than $8,000, and the balance of the loan, he is going to be expected to pay probably $15,000. The lender will sue him in court if he doesn't. Also, returning the car to the lender will damage his credit to the point that he might not be able to get another car loan for several years. The lender will also go after his grandfather for the money, because he co-signed the loan, and it could financially ruin him as well.

I don't know how an 18 year old can dig himself such a financial hole. That's a lot of responsibility for a young man. He probably should have sought some financial advice from a competent individual before plunging so deep into debt.

Maybe your boyfriend should put off school for awhile, get a second job, and get in better financial shape before having to buy tools and pay tuition. Getting the car loan paid off should be his first priority, since if he fails, his grandfather is going to go down with him.

One more thing, misinformed people here may mention some magical 3 day or 30 day "law" which allows a buyer to back out of a car deal. There isn't any. A car sale is final. Don't waste your time pursuing that. Lemon laws only apply to new cars and the car has to meet specific conditions. No help here either.

Answer 3

Really if you already signed the contracts and drove it off the lot... well there isn't really a thing you can do. You can go and trade it in and get another car.... but if it was 8 thousand initially they wont' even give you that much for it. As soon as you drive it off the lot it is worth less. So you would still owe the difference between what they give you and the loans value. Not to mention you wouldn't have a car.

At this point he really needs to get another job. That is really his only option. Or you need to get a job. If you don't make the payments and they repo the car. They sell it at auction. It won't go for even anything near the 8 thousand.... Then you will owe the difference between the loan and the amount they sold it for at auction. So lets say they sell it for 4 thousand.. and that is pry being nice. You will still owe them 17 thousand on the loan! And they WILL collect! Even if they have to garnish his wages. Here I think they can garnish if I remember correct 1/4 the paycheck and you can't do a thing about it. Not to mention then you have also destroyed your credit!

So take it from me who has DONE all this! Get another job and pay the car off. If the loan was set up correct you should be able to pay off the car early and get a little break on the amount of interest you owe! But make the payments. I still suffer from a decision about a car I made when I was 19!

Answer 4

In some states you can return a recently purchased car if it is unsatisfactory for some valid (mechanical) reason. In all states, you are required to buy insurance, but that may only apply to accidents which cause property damage or injury. Most big car dealerships have a written contract that spells out what you can or must do if there is a problem. In CALIF. and you want to return a car and get your money back, you must return the car within 3 days. Most dealerships will take the car back, but at a tremendous $dollar$ loss. They are, in effect, buying the car back from your boyfriend. If there was a finance contract on the car, there will be penalties on the car payments due which were never paid. If you signed up to pay $21,000 for an $8,000 car, you may have a legal claim against the seller. Talk to the Better Business Bureau in your state. Otherwise, your grandfather and boyfriend are going to be paying for this car for 6 more years.

Answer 5

Your boyfriend will hate this idea, but it is feasible for now. When he goes to school, buy el cheapo tools from wal-mart. They aren't as good as craftsman or snap-on, but they will allow him to do what he needs. Besides, what kind of aspiring mechanic doesn't already have his own tools?

Another thing to do is switch car insurance companies. 150 dollars a month? That is just plain silly. Even with full coverage and his age, it shouldn't be that high.

And what I would hate the most.... are you willing to pitch in and help with the rent and utilities? I'm sure you would hate it and it would crush his ego, but it seems like a necessity.

And how exactly did he add $13k to the cost of the car? Sounds like he got his priorities mixed up there. He made a mistake and should learn from it. Hopefully he does.

Answer 6

The car was worth 8K and you owe 21K?? You can't afford to return it. You will need to come up with the difference in what you owe and what they give you for the car. The only thing I can tell you is to try and see what you can sell it for. I doubt if you will be able to get that much out of the car to pay off the loan.
What about a part time job until you can get yourself established?

Just starting out I would hate to tell you to file bankruptcy. Hopefully you can work something out. good luck.

Answer 7

if the contracts are already signed, unfortunately there really is no way to return the car because the dealer is not obligated to take the care back since legal binding contracts were signed. I would try and sell the car yourself for as close to what you owe as possible. Park it in a high traffic area so lots of people see it and hopefully it will sell. Good luck!

Answer 8

ooops... should have thought ahead.... best bet is to meet your obligation with the car. Dont mess up your credit. try a part time job delivering pizzas to earn the extra money. they offer flexible hours and wont interfere with school. Good luck.